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Acknowledgments... xi About the Author... xiii Disclaimer... xv Notice.... xvii How to Use This Book... xix Introduction... xxiii CHAPTER 1 SUBROGATION GENERALLY 1.01 Elements... 1-1 1.02 Origins of Subrogation... 1-3 1.03 Types of Subrogation... 1-4 [1] Contractual (Conventional) Subrogation... 1-5 [2] Equitable (Legal) Subrogation... 1-7 [a] Difference between Subrogation and Assignment... 1-7 [b] Roles of Equity... 1-8 [3] Statutory Subrogation... 1-13 [a] Workers Compensation... 1-14 [b] Hospital Liens... 1-16 [c] Medicare... 1-16 [d] Medicaid... 1-21 [e] Interplay between Workers Compensation and Medicare/Medicaid... 1-26 [f] Federal Employees Health Benefit Act... 1-27 [g] Other Statutory Subrogation... 1-27 1.04 Purposes of Subrogation... 1-28 1.05 Anti-Subrogation Arguments... 1-30 CHAPTER 2 AUTOMOBILE INSURANCE 2.01 Generally... 2-2 2.02 History of Automobile Insurance... 2-3 [1] Origins... 2-3 iii

[2] History of the Automobile... 2-4 [3] Automobile Insurance in America... 2-5 2.03 Types of Automobile Insurance Coverage... 2-5 [1] Bodily Injury Liability... 2-6 [2] Property Damage Liability... 2-6 [3] Medical Payments Liability... 2-6 [4] Personal Injury Protection... 2-7 [5] Uninsured/Underinsured Motorist Coverage... 2-8 [6] Collision and Comprehensive Coverage... 2-10 [7] Add-Ons and Riders... 2-10 [a] Rental Reimbursement Coverage... 2-10 [b] Towing and Labor Coverage... 2-11 [c] Gap Auto Insurance Coverage... 2-11 [d] Waiver of Depreciation Coverage... 2-11 [8] Commercial Automobile Coverage... 2-11 [a] Automobile Liability... 2-12 [b] Hired and Non-Owned Coverage... 2-12 [c] Medical Payments... 2-12 [d] Personal Injury Protection... 2-12 [e] Uninsured Motorist Coverage... 2-12 [f] Underinsured Motorist Coverage... 2-13 [g] Pollution Exclusion Upset and Overturn... 2-13 [h] Drive Other Vehicle Coverage... 2-13 [i] Collision Coverage... 2-14 [j] Comprehensive Coverage... 2-14 [k] Garage Liability Coverage... 2-14 [l] Garagekeeper s Liability Coverage... 2-14 2.04 No-Fault Insurance Coverage... 2-15 [1] Generally... 2-15 [2] History... 2-16 [3] Personal Injury Protection Benefits... 2-17 [4] Thresholds... 2-17 [5] Limited Tort... 2-18 [6] Loss Transfer Statutes... 2-19 [7] No-Fault States... 2-20 [a] Modified No-Fault... 2-20 [b] Add-On No-Fault... 2-20 [c] Voluntary ( Choice ) No-Fault... 2-21 [8] Effectiveness and Future of No-Fault... 2-21 iv

CHAPTER 3 SUBROGATING MEDICAL AND PROPERTY DAMAGE CLAIMS 3.01 Auto Subrogation and the American Tort System... 3-3 3.02 Subrogation Suits and Interventions... 3-5 [1] Filing a Subrogation Lawsuit... 3-6 [2] Intervention in a Bodily Injury Action... 3-7 [a] Mandatory Joinder of Subrogated Party... 3-8 [b] Is the Subrogated Party a Plaintiff, Defendant or Other?... 3-9 [c] The Reverse Must Subrogated Party Join the Insured?... 3-10 [d] What Do You Do if You Are Not Joined?... 3-12 [3] Use of Subrogation Counsel... 3-13 3.03 Made Whole Doctrine... 3-16 [1] Garrity v. Rural Mutual Ins. Co.... 3-17 [2] Rimes v. State Farm Mutual Auto Ins. Co.... 3-17 [3] What Does It Mean to Be Made Whole?... 3-19 [a] Basic Test... 3-19 [b] Contributory Negligence... 3-19 [4] Allocation of Damages... 3-26 [5] Attorney s Fees... 3-27 [6] Where Policy Specifically Negates Made Whole Doctrine... 3-27 3.04 Common Fund Doctrine... 3-34 3.05 Statute of Limitations... 3-36 3.06 Uninsured Motorist Subrogation... 3-37 [1] Generally... 3-38 [2] Collection Law.... 3-38 [3] Consent-to-Sue Clause.... 3-39 [4] Consent-to-Settle Clause... 3-39 [5] Substituted Payments.... 3-40 [6] UM/UIM Offsets.... 3-42 [a] Personal Injury Protection (PIP) Payments... 3-42 [b] Liability Payments... 3-43 3.07 Collision Subrogation... 3-43 3.08 PIP / Med Pay Subrogation... 3-45 [1] Overview... 3-45 [2] PIP Subrogation... 3-48 v

[3] Med Pay Subrogation... 3-49 3.09 Release of Tortfeasor by Insured... 3-49 3.10 Waiting for Insured s Bodily Injury Claim to Settle... 3-50 [1] Third-Party Carrier Requirement.... 3-51 [2] Statutory Requirement.... 3-51 3.11 Anti-Subrogation Statutes... 3-51 3.12 Arbitration... 3-53 [1] Generally... 3-53 [2] History of Arbitration... 3-54 [3] Intercompany Arbitration... 3-56 [a] Auto Subrogation Arbitration... 3-57 [b] Personal Injury Protection Arbitration... 3-58 [c] Medical Payment Subrogation Arbitration... 3-59 [d] Uninsured Motorists Subrogation... 3-59 [e] Special Arbitration... 3-60 [f] Claims Excluded for Arbitration... 3-60 [4] Intercompany Arbitration Providers... 3-61 [5] Arbitration Services and Outsourcing... 3-62 [6] Use of Subrogation Counsel in Arbitration... 3-63 3.13 Reimbursement of Insured s Deductible... 3-63 3.14 Rental Vehicles, Loaner Vehicles, and Test Drivers... 3-69 3.15 Bailment... 3-72 3.16 Guest Statutes / Family Purpose Doctrine... 3-74 [1] Guest Statutes... 3-74 [2] Family Purpose Doctrine... 3-77 [3] Parental-Immunity Doctrine... 3-78 3.17 Economic Loss Doctrine... 3-80 [1] Definition of Economic Loss... 3-80 [2] Purpose of Economic Loss Doctrine... 3-82 [3] History of Economic Loss Doctrine... 3-82 [4] Minority Rule... 3-83 [5] Majority Rule... 3-84 [6] Intermediate Rule... 3-85 [7] Other Property Exception... 3-86 [8] Warranties... 3-87 [9] Economic Loss Doctrine in Wisconsin... 3-88 [a] Generally... 3-88 [b] First Recognized... 3-88 [c] Other Property Exception... 3-89 [d] Component Parts... 3-90 vi

[e] Asbestos Exception... 3-91 [f] Privity... 3-91 [g] Consumer Transactions... 3-91 [h] Public Policy Exceptions... 3-92 [i] Fraud and Misrepresentation... 3-92 [j] Service Contract versus Product... 3-94 3.18 Multiple Claims in Excess of Liability Limits... 3-95 [1] First Come, First Served Approach... 3-95 [2] First to Judgment Approach... 3-96 [3] Pro Rata Approach... 3-96 [4] Good Faith, Bad Faith Approach... 3-96 [5] Interpleader... 3-97 3.19 Interstate Subrogation and Conflict of Laws... 3-97 [1] Interstate Subrogation... 3-97 [2] Conflict of Laws... 3-97 3.20 Subrogation and Fair Debt Collection Practices... 3-102 [1] Federal Fair Debt Collection Practices Act (FDCPA)... 3-103 [2] State Decisions and Laws Consumer Protection Acts... 3-109 3.21 Direct Action Statutes... 3-117 CHAPTER 4 AUTOMOBILE INSURANCE SUBROGATION IN ALL 50 STATES Introduction... 4-1 4.01 Alabama... 4-3 4.02 Alaska... 4-41 4.03 Arizona... 4-67 4.04 Arkansas... 4-91 4.05 California... 4-127 4.06 Colorado... 4-175 4.07 Connecticut... 4-215 4.08 Delaware... 4-247 4.09 District of Columbia... 4-283 4.10 Florida... 4-309 4.11 Georgia... 4-357 4.12 Hawai i... 4-395 vii

4.13 Idaho... 4-437 4.14 Illinois... 4-457 4.15 Indiana... 4-507 4.16 Iowa... 4-541 4.17 Kansas... 4-565 4.18 Kentucky... 4-591 4.19 Louisiana... 4-629 4.20 Maine... 4-667 4.21 Maryland... 4-689 4.22 Massachusetts... 4-717 4.23 Michigan... 4-747 4.24 Minnesota... 4-807 4.25 Mississippi... 4-841 4.26 Missouri... 4-859 4.27 Montana... 4-885 4.28 Nebraska... 4-911 4.29 Nevada... 4-931 4.30 New Hampshire... 4-951 4.31 New Jersey... 4-969 4.32 New Mexico... 4-1017 4.33 New York... 4-1035 4.34 North Carolina... 4-1105 4.35 North Dakota... 4-1125 4.36 Ohio... 4-1149 4.37 Oklahoma... 4-1181 4.38 Oregon... 4-1203 4.39 Pennsylvania... 4-1237 4.40 Rhode Island... 4-1271 4.41 South Carolina... 4-1287 4.42 South Dakota... 4-1303 4.43 Tennessee... 4-1319 4.44 Texas... 4-1339 4.45 Utah... 4-1377 4.46 Vermont... 4-1397 4.47 Virginia... 4-1413 4.48 Washington... 4-1435 4.49 West Virginia... 4-1471 4.50 Wisconsin... 4-1499 4.51 Wyoming... 4-1541 viii

CHAPTER 5 SUSPENSION OF DRIVER LICENSES AND CRIMINAL RESTITUTION 5.01 Suspension of Driver Licenses Generally... 5-1 5.02 Driver License: Privilege or Right... 5-2 5.03 Criminal Restitution Generally... 5-4 5.04 Suspending Driver Licenses and Criminal Restitution in All 50 States... 5-5 Table of Cases... TC-1 Table of Statutes... TS-1 Table of Other Authorities... TOA-1 ix